DENWAY INV<0203> - Announcement

The  Stock  Exchange of Hong Kong Limited takes no responsibility for
the  contents of this announcement, makes no representation as to its
accuracy  or  completeness  and  expressly disclaims any liability
whatsoever  for  any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.


DENWAY INVESTMENT LIMITED
(Incorporated in Hong Kong under the Companies Ordinance)

Announcement

On  23rd  April, 1999, the controlling shareholder of the Company
placed  68,500,000 existing Shares, representing approximately 2.7 per
cent.  of  the  issued share capital of the Company, to independent
third  parties  and  sold  840,000  existing Shares, representing
approximately  0.03  per  cent.  of the issued share capital of the
Company, on the market.

This  statement  is made at the request of the Stock Exchange of Hong
Kong Limited (the `Stock Exchange').

The  directors  (the  `Directors') of Denway Investment Limited (the
`Company')  noted the recent decrease in the price of the shares (the
`Shares')  of the Company and wish to announce that they are not aware
of  any  reasons for such decrease except that, on 23rd April, 1999,
China  Lounge  Investments Limited (`China Lounge'), the controlling
shareholder  of  the  Company, had placed (the `Placing') 68,500,000
existing  Shares,  representing  approximately 2.7 per cent. of the
issued  share capital of the Company, to independent third parties and
sold  (the  `Share  Sale')  840,000  existing Shares, representing
approximately  0.03  per  cent.  of the issued share capital of the
Company,  on  the  market at prices ranging from $0.46 to $0.50. As
disclosed  in  the  Company's announcement dated 5th February, 1999
regarding  the  completion of the rights issue of the Company, public
shareholding  of  the Company had decreased to approximately 18.6 per
cent.  of  the issued share capital of the Company. After the Placing
and  the Share Sale, approximately 21.4 per cent. of the issued share
capital of the Company is held by the public.

The  Directors  also  confirm  that  there are no negotiations or
agreements  relating  to intended acquisitions or realisations which
are  discloseable under paragraph 3 of the Listing Agreement, neither
is  the board of Directors aware of any matter discloseable under the
general  obligation  imposed by paragraph 2 of the Listing Agreement,
which is or may be of a price-sensitive nature.

The  directors  of  China  Lounge and the Company have jointly and
severally  undertaken to the Stock Exchange to take appropriate steps
to  ensure  that sufficient public float exists in the Shares as soon
as possible.

Made  by  the  order of the board of the Directors, the directors of
which  individually and jointly accept responsibility for the accuracy
of the information contained in this announcement.

                               By order of the board 
                               Denway Investment Limited 
                               Hu Peizhuo 
                               Deputy Managing Director                   
   

Hong Kong, 24th April, 1999